Intimation for allotment of 750000 Sweat Equity shares
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Shri Gang Industries has allotted 7,50,000 sweat equity shares to Mr. Varun Gupta, the company's Chief Operating Officer, who belongs to the promoter group. The shares have a face value of Rs. 10 each and were issued at Rs. 99 per share, marginally above the fair market value of Rs. 97.86 determined by an independent valuer. The allotment was made on a non-cash consideration basis, meaning no cash inflow to the company, and was approved by the Nomination and Remuneration Committee on November 13, 2025. This represents a dilution of about Rs. 7.42 crore in equity value and serves as a form of long-term incentive compensation to the promoter-group COO.
Shareholders will see a modest equity dilution as 7.5 lakh new shares enter the float, which could marginally pressure the stock price in the short term. However, the allotment to a promoter-group insider at a price close to fair market value signals alignment of management interest with the company, which is generally viewed positively by long-term investors.